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From the high of $47.89 in October, 2007 (A), CCL Industries Inc. declined below a falling trend line (dotted line) and below its 40-week moving average to $19.84 in March, 2009 (B). Subsequently, the stock settled into a horizontal trading range mostly between $20 and $25 and then rallied and settled into another horizontal trading range mostly between $25 and $30 (dashed lines). This price action produced a bullish technical pattern known as a Duplex Horizontal. A rise above $31-$32 would confirm the breakout and signal higher targets. Only a decline below $25-$26 would reverse the positive status of this stock.

Point & Figure measurements provide initial targets of $39 and $44 (32-per-cent and 50-per-cent appreciation potentials, respectively, from current levels). The large base supports higher targets.

Ron Meisels is a contributor to the www.NA-marketletter.com website. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.

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Source: www.decisionplus.ca

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About the Authors
President of Phases & Cycles Inc.

Ron Meisels, President, Phases & Cycles Inc., has been active as an Analyst since 1971. He was Vice President and Director of Technical Research of Nesbitt Thomson (now BMO Nesbitt Burns) from 1982 to 1990. He was ranked among the top three technical analysts by Canadian Institutions for six consecutive years (Brendan Wood Survey). More

Senior Technical Analyst at Phases & Cycles Inc.

Monica Rizk, Senior Technical Analyst, has a Bachelor's degree in Business Administration and completed the Canadian Securities Institute course. She has been with Phases & Cycles since September 2000 and specializes in the research of Canadian and US stocks using Point & Figure as well as bar chart analysis. More

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